LSBF ( EXAM TIPS DECEMBER 2013 ALL SUBJECTS) F4 Statutory interpretation Offer & acceptance Exclusion clauses Breach of contract Neighbourhood principle Dismissal Authority of agents (particularly directors) Company names Loan capital Issue of shares Promoters Meetings Auditors Fraudulent & wrongful trading F5 1. Throughput accounting and abc 2. Linear programming 3. Flexible budget and learning curve 4. Mix and yield variances, planning and operational variances. 5. Divisional performance or performance in services F6 Question 1 – Income tax and national insurance computations for someone employed and someone self-employed, possibility of introducing a partner into the partnership Question 2 (a) Corporation tax computation • Adjustment of a trading loss and relief for the trading loss in the current chargeable accounting period and carry back for 12 months. • Overseas aspects of corporation tax (b) VAT or maybe a separate question • Due date for VAT registration • Accounting for VAT and the due date for paying it. Question 3 Capital gains tax for individual with a mixture of disposals and a company disposing of shares. Question 4 Overseas aspects including the advantages and disadvantages of making the election to exempt the profits of the overseas branch from UK corporation tax or maybe VAT as a separate question. Question 5 IHT – • Advantages and disadvantages of making lifetime gifts • IHT on making lifetime gifts into a trust F7 Q1: Consolidated P/L with Associates or CSFP + CPLA. Discounting & unwinding, Contingent consideration. Q2: Published Accounts with at least 15 marks on Standards such as Contracts, Leasing, Financial Instruments, SOCIE, Revaluation & Depreciation, Tax, Substance, Revenue Recognition, etc Q3: Interpretation and / or Statement of Cash Flow, with 5 marks on Standards Q4 & Q5: Mixed Standards covering Provisions, EPS, Intangibles, Impairment, etc (see Q2 above) - remember obscure topics such as Investment Properties and Capitalisation of Borrowing Costs have produced full questions recently, so no topic is safe to leave out. F8 Threats to Objectivity and Conflicts of Interest Corporate Governance Code overview of contents Audit Risk/Response scenario Payroll Controls, including test data Substantive Tests on Payroll, Inventory Subsequent Events Other Information Audit Report scenarios Pros and Cons of outsourcing Internal Audit ISA 210, 250, 402, 610 F9 Investment appraisals: NPV, lease or buy decision, capital rationing/asset replacement. Cost of capital: WACC: calculating cost of equity using CAPM, cost of redeemable debt and bank loan/preference shares. discussion of capital structure theory (traditional, both theories on M$M, and pecking order theory). Working capital management: working capital policies relating to working capital financing/investment, factoring, EOQ or probably a cash budget. Business valuation valuation of equity using; DVM, P/E ratio and asset basis. Valuation of convertible debt and calculation of conversion premium. explanation of weak/semi-strong and strong form of efficient market. Sources of finance factors to consider in raising short/long-term capital or equity/debt capital. right issues and calculation of TERP and effect on shareholders wealth. Effect of raising debt/equity capital on some key ratios like EPS, Debt/equity ratio and interest cover. Risk management A discussion question on interest rate risk. P1 Governance 1. Evaluate Governance Failures 2. Responsibilities and Roles of the Board of Directors 3. Role of the Chairman / Importance of the Chairmans Statement 4. Legal Obligations or Reasons for a director leaving the company 5. AGM and Proxy Voting 6. Reasons for Institutional Investor Intervention 7. Governance in a Charity 8. Global Governance Standards 9. Scope of a CSR Policy 10. Stakeholder Classifications Internal Control 1. The Role of Internal Auditors or criticism of their approach 2. Mandatory vs Voluntary Disclosure and Content of Disclosure Risk Management 1. Role of a Risk Manager 2. Static and Dynamic Risk 3. TARA 4. Risk Audit Ethics 1. Absolute and Relative Ethics 2. Normative and Instrumental Ethics 3. Grey, Owen and Adams 4. Kohlberg 5. Professional and Public Interest 6. IFAC Code of Ethics 7. Sustainability and Environmental Audit P2 Q1 p/l or cfs perhaps Q2&3 mix Q4 equity or integrated reporting perhaps P3 Strategic Analysis - maybe value chain Strategic Choice Marketing Mix / e-marketing Software selection Strategic aspects to Pricing P4 cost of capital using the principles of Modigliani and Miller prepositions or geared and ungeared betas. - International investment appraisal with adjusted present values or net present values. - Mergers and acquisitions - valuation using free cash flows, defensive tactics and regulations of takeovers - capital reconstruction schemes - designing a capital reconstruction scheme or assessing the success of a given scheme - option pricing theory. Real options, example, option to abandon, expand and delay. Valuation of company using the Black-Scholes option pricing model and delta hedge. - hedging exchange rate and interest rate risk using futures, options and swaps - Islamic finance P5 • Divisional performance measurement using both profit based and value based measures (EVA, ROI, RI and other profit measures). • Assessing the different performance measurement systems used in organisations including the performance pyramid, the building blocks models and the BCG matrix. • Corporate failure and Environmental management accounting. • Difficulty in assessing performance and budgeting in non for profit making organisations. • Quality issues including costs and models such as TQM, Kaizen and Six Sigma. • HRM and Reward systems. P6 Corporation tax including groups, overseas aspects, controlled foreign companies and transfer pricing Partnership including a partner joining or leaving including loss relief Incorporation of a business Personal service companies Investment in EIS and SEIS and the tax implications Partial exemption for VAT. P7 Risk of Material Misstatement in Group Audit scenario Threats to Objectivity Money Laundering Advertising Matters and Evidence re IFRS2, IAS38, IAS37, IAS16 Subsequent Events Due Diligence Social and Environmental Reporting KPIs and Evidence Audit Reports scenarios plus comment on proposed changes to standard Report structure yours truly...Mr. Mon
Posted on: Sun, 17 Nov 2013 14:31:18 +0000
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